Will the Congress Government in Karnataka Address the Rs 33,000 Crore Dues to Contractors?
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Synopsis
The State Contractors' Association in Karnataka is demanding the release of Rs 33,000 crore in unpaid dues, threatening protests and work stoppages. With allegations of corruption surfacing, the tension between contractors and the government escalates. Will the Congress government respond to their demands?
Key Takeaways
- State Contractors' Association demands release of Rs 33,000 crore.
- Protests and work halts threatened if dues are unpaid.
- Allegations of corruption and high commissions under Congress.
- CM Siddaramaiah urges critics to take allegations to court.
- Concerns over the impact on smaller contractors.
Bengaluru, Oct 17 (NationPress) The State Contractors' Association has called on the Congress-led administration in Karnataka to disburse Rs 33,000 crore in outstanding payments to contractors. They cautioned that failure to release these funds would lead to a complete halt of all operations statewide, along with a significant protest.
During a press briefing in Bengaluru, the State Contractors' Association President, R. Manjunath, stated, “Upon taking power, the Congress leaders assured us they would address issues faced by contractors. Currently, they are not fulfilling their promises regarding dues. Contractors are now left with no alternative but to contemplate drastic actions.”
He noted that the families of contractors are persistently contacting the association. Out of an overall amount of Rs 52,000 crore in unpaid bills, only a portion has been settled by certain departments, leaving Rs 33,000 crore still owed. “We are willing to wait another month. If these payments are not made, we will initiate a strong protest,” he warned.
Manjunath went on to accuse, “Congress leaders previously claimed there would be no commissions for issuing ‘NOCs’ to contractors. We have informed Chief Minister Siddaramaiah that under his leadership, inflated commissions are indeed being charged.” He clarified, “We are not questioning the CM regarding the exact figures of these commissions, whether they amount to 40, 60, or even 80 percent.”
He added, “We seek to avoid conflict with the state government and hope to resolve this matter amicably. We plan to meet with all relevant ministers to communicate our timeline. Currently, tenders are being allocated through a package system, favoring a small number of large contractors while leaving smaller contractors without opportunities. In some instances, a single contractor is awarded tasks worth Rs 100 crore.
In response to the allegations made by the Contractors’ Association president regarding the commission issue ongoing under the Congress regime, Chief Minister Siddaramaiah remarked in Mysuru on Friday that those making such accusations should take their claims to court. He maintained that the allegations are being made intentionally against his administration.
Earlier in October, the Karnataka State Contractors' Association had sent a letter to CM Siddaramaiah alleging 80 percent commissions and nepotism in state contracts by various ministers and leaders.
The BJP Karnataka unit criticized the Congress-led government for operating a 40 percent campaign against the previous administration led by Basavaraj Bommai and called for the resignation of CM Siddaramaiah over the 80 percent commission allegations. The association had also forwarded their concerns to the Congress high command.
Point of View
I recognize the critical nature of the situation unfolding in Karnataka. The demands of the State Contractors' Association highlight significant issues regarding transparency and accountability in government dealings. It is essential that the Congress-led administration addresses these concerns to restore faith among contractors and ensure that public projects continue without disruption.
NationPress
18/10/2025
Frequently Asked Questions
What is the amount owed to contractors in Karnataka?
The amount owed to contractors in Karnataka is Rs 33,000 crore.
What actions are contractors threatening to take?
Contractors are threatening to halt all work across the state and stage large-scale protests if their dues are not released.
Who is the president of the State Contractors' Association?
The president of the State Contractors' Association is R. Manjunath.
What allegations have been made against the Congress government?
The Contractors' Association has alleged that there is ongoing corruption and high commissions required to issue NOCs under the current government.
What has the Chief Minister said in response to these allegations?
Chief Minister Siddaramaiah has stated that those making allegations of corruption should approach the court, asserting that claims are being made deliberately against his government.
